Now is a great time to start investing because the market is down right now. It's like your favorite department store is having a sale and you need to make your purchases before the prices start to go up.
What are the benefits of a 401k?
Tax Deferred Growth. The dollars you put into a 401k account are deducted from your pre-tax salary. You only pay taxes on the money when you start withdrawing money from the account (retirement).
Lower Taxes. The amounts you contribute to a 401k are deducted from your pre-tax salary. You are able to deduct this amount from your taxable income (up to the applicable limit).
Free Money. Most companies will match your 401k contributions up to a certain amount. For example, my companies offers a 3% match on the first 5%. Even when I was in debt, I made sure to contribute at least 5% into my 401k to make sure I took advantage of the free match from my employer.
Portable Money. If you leave your job, you have the choice of taking your money with you or your employer may allow you to leave your money in your former company's plan.
Don't wait until next week or next month to start investing in your 401k. Do it NOW! This is money that you will need to replace income from a job once you are retired.When you retire, don't you want to be hanging out on the golf course or travelling to your favorite places instead working?
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